HARARE - President Robert Mugabe's Cabinet has ordered Empowerment minister Francis Nhema to craft a paper clarifying government’s position on the Indigenisation Act.
Last week, Finance minister Patrick Chinamasa told Parliament that the document will put to an end to speculation surrounding the law – compelling foreigners to give up 51 percent shareholding despite nature of business.
This comes on the back of reports that government has shifted stance on the implementation of the policy, moving from a one-size-fits-all approach to a sector specific one.
Recently, Mugabe ruled out the one-size-fits-all indigenisation approach, saying only companies utilising the country’s natural resources will be required to immediately turn over majority stakes to indigenous Zimbabweans.
“Cabinet directed the minister of Youth Indigenisation and Economic Empowerment to take up this issue with a view to aligning the law to the policy pronouncements,” Chinamasa said.
“He has been asked to start aligning and clarifying that position at the Politburo and minister Nhema has been charged with that responsibility,” he said during a question and answer session.
Chinamasa said there will be 100 percent ownership of resources, but hastened to say ownership and control are different things.
“Please do not confuse ownership with control. I have said all our struggles have been to assert our control over resources and that control is 100 percent,” the former Justice minister said.
“What we now do with exploitation of that is a matter of policy. How we exploit our land…and our minerals which are depleting… is now going to be a policy issue,” he said.
“What is important is that we want a win-win solution, relationship and arrangements…We are also saying that as they come to make money, using our assets, we also want to reap the benefits of the exploitation of those assets,” said Chinamasa.
Zimbabwe is desperately trying to attract Foreign Direct Investment and access international lines of credit.
This comes as economic analysts have expressed mixed feelings over government’s rethink on the controversial policy.
While some commend the new flexible approach, others feel government should scrap the law.
Analysts say if government casted in stone its vocal promises about making the empowerment law flexible, more investors will feel protected and visit the country.
Former Economic Planning and Investment Promotion minister Tapiwa Mashakada recently said the government’s policy rethink must be effected through legislative amendments, not vocal assurances.
Netherlands ambassador to Zimbabwe Gera Sneller has also said Dutch investors were ready to come into the country provided government clarifies policies that protect investor interests.
“Investors should have assurance that the same laws valid today will be valid tomorrow and that the same conditions should be applicable across sectors,” she said.
Investors and financiers are, however, wary of Zimbabwe’s policies, particularly the indigenisation law.